Get the professional sander guys in to repair the living areas and kitchen but don't go too dark with the stain as it will kill the lovely grain in the matai. I'm thinking a couple of tones richer than the timber knots showing in your photo, definitely no yellow tone at all. In NZ stepping on to carpet especially in a kiwi winter is so much nicer than a cold floor board shock!!! A nice area rug for the lounge and you're done.

after watching my daughter and her husband agonize over the way their expensive timber floor has not held up well after 3 years, I would recommend tiles/wood look tiles with under heating. Their beautiful warm expensive floor looks like it always needs a clean and polish, not from neglect, they have cared for it well. One of the boards now has a slight and painful moan when it's stepped on :-( I grew up in a completely wood floor home and although it looked wonderful, my Mother hated it. ....and the mats ! Wood is a lot harder to maintain than tiles ,(no matter what the die hards say) the modern wood finishes are much better than they used to be.... But a piece of wood is rather arty no matter what it's used for and it does demand to be loved and cared for.....and if something goes wrong it's a lot more expensive to fix than sand and cement. Ultimately you have to be happy. BTW underheating tiles is warmer than timber :-)

Hi Luke, thanks for your reply. Yes, there is existing plumbing but we need to create a gradient somehow on the wood floor. Concrete floors can be ground to create the gradient but need to come up with some other solution with the wood.

HI Madison There are pros and cons for every situation, but you need to work out what is best for your lifestyle. Personally, I agree with the carpet in the living room, and hard flooring in the kitchen/dining areas. All you need to do is work out your demarcation points (where carpet will meet hard flooring). A great retailer should be able to visit you at home, discuss options, give you pricing and away you go! (Us if you are in Auckland :) ) With littlies, I'd suggest a vinyl plank.....other posts will tell you I'm a big fan of it, but with kids, toys, mess, liquids etc, vinyl planks will give you the best wear over time. They are very hard wearing (Karndean have lifetime residential warranty), easy to keep clean, and waterproof - can be installed in all wet areas. Timber flooring, depending on which you choose (real wood, engineered wood, laminate), may not be the best "fit for purpose" products in your situation. Whilst I'm not trying to champion one product over the other, having had carpet with little kids, and putting drop sheets over carpet, under highchairs, why wouldn't someone not put in vinyl planks?